Bulls Resting, Not Fleeing

While the stock market may have a rough August, technical signs suggest the bull market is taking a breather, not coming to an end.

Thanks to last week's 467-point drop in the Dow Jones Industrial Average, the short-term trend in the stock market is now to the downside. While signs of technical ills are plentiful, the stock market, like the old man in "Monty Python and the Holy Grail," is still saying, "I'm not dead yet."

Last week, I wrote here about broken short-term trendlines and averages but still-intact longer-term counterparts (see Getting Technical, "The Bear Days of August", July 30). A correction did look to be...